Two multibagger stocks under Nifty500 doubled investors money in last six months

Mar 28, 2023

By: Bhakti Makwana

​Multibagger stocks ​

​However unbelievable it may sound but even in this market, investors can make money. Shares of Jindal Stainless and UCO Bank are only two stocks in the Nifty500 that have doubled investor wealth in the last 6 months, outperforming benchmark indices. ​

Credit: Canva

Jindal Stainless has skyrocketed 135 percent in last six months

​Shares of the steel maker had surged ahead of its merger with Jindal Stainless Hisar (JSHL). March 9, 2023, was the record date for a share swap wherein for each share held in Jindal Stainless (Hisar), a shareholder will get 1.95 shares of Jindal Stainless (JSL). ​

Credit: Jindal-Stainless

Merger creates a mega stainless steel conglomerate

​The company believes that the merger of JSHL in JSL will create a mega stainless steel conglomerate, which will propel Jindal Stainless among the top 10 global stainless steel producers even at its current capacity level.​

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Shares of this Kolkata based bank doubled in last 1 year

​UCO Bank surged nearly 100 percent in the last six months in line with the PSU Bank index that has also surged about 24 percent during the period thanks to a robust recovery led by improving asset quality, credit growth after Covid-19 hit the economy.​

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UCO Bank surged significantly ahead of privatisation reports

​Shares of the public sector lender have surged on reports of privatisation of the bank as part of the government’s divestment plan.

Credit: UCO-Bank

Government's privatisation plans

In Budget 2021-22, finance minister Nirmala Sitharaman had announced privatisation of PSBs in order to garner ₹1.75 lakh crore from divestments.

Credit: UCO-Bank

​Not only share price but UCO Bank’s profit also doubled ​

​In the latest December quarter, the lender reported a 110 percent on year jump in net profit at ₹653 crore marking it the highest quarterly net profit for the bank in its 80 years of existence. ​

Credit: UCO-Bank

​2022 was a blockbuster for PSU banks​

​The PSU Bank index emerged as the top sectoral winner in 2022, recording gains of nearly 73 percent – or about 16x the gains of the Nifty50 in 2022, as on December 15. ​

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Sensex remained cautious in the last six months

While these companies gave two times returns to investors in the last six months, benchmark index Sensex gained nearly 2 percent amid geopolitical tensions and rising interest rates cycle.

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